“The Chinese are coming, the Chinese are coming. And they’re snapping up U.S. companies along the way.
Chinese entities agreed last year to spend more than $10 billion buying all or part of 46 companies here, according to Dealogic. That value exceeds all the deals inked from 2009 through 2011 combined, The Wall Street Journal reports.
In addition, Chinese firms announced $23 billion worth of deals for Canadian companies or stakes in 2012.
China is staying away from big companies and ones involved with defense or important technologies to avoid rejection by the U.S. government, after some earlier failures.
Most of the concerns China is targeting are small — under $500 million — and closely held in order to increase the odds of being approved.
Last week, the government approved Wanxiang America’s purchase of battery maker A123 Systems for $257 million.
“You just need to understand the rules, follow the rules, be very transparent and let them make the decision,” says Pin Ni, president of Wanxiang America, who started the U.S. offshoot of China’s Wanxiang Group out of a home office in Chicago.
Among the biggest deals last year was one to sell the movie-theater chain AMC Entertainment Holdings to Wanda Group for $700 million….”
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